iREIT Daily

Here’s Why China Is All Over the News Today

Brad Thomas

467 postsDecember 3, 2021

We’ve known that China was a growing deal for at least two decades now. It was 2001 when British economist James O’Neill coined the term BRIC for four emerging markets worth watching: Brazil, Russia India, and China.

We’ve known that China was a big deal for at least the last 10 years as investors flocked to buy into whatever Chinese company they could get their hands on. But it’s clear today – if it hasn’t been for quite some time – that the Asian giant isn’t content with mere growth.

It wants much, much, much more than that. The proof is at least partially in the Didi Global (DIDI) pudding.

Just five months after going public on the New York Stock Exchange, the ride-hailing company says it will delist. That’s despite its $14-per-share debut, the biggest IPO of a Chinese business on an American exchange.

Of course, shares have lost ground from there. But that’s because of Chinese governmental moves to punish it for pursuing a U.S. listing against its wishes.

And today, we find out that, as it posted on Twitter this morning:

Following careful research, the company will immediately start delisting on the New York Stock Exchange and start preparations for listing in Hong Kong.

It didn’t say why, but it doesn’t need to. We also didn’t need Reuters to report that the Communist Party of China was heavily involved in the decision.

We all saw what happened to Alibaba (BABA) between this year and last. Speaking of which, it and other Chinese tech stocks definitely went down on the news on delisting fears…

Fears that are becoming more and more realistic as this year winds down. Not that the growing possibility or its implications seem to bother big American businesses one bit…

China Makes, the World Takes

We already know that – as expected – JPMorgan’s (JPM) Jamie Dimon caved quickly over his joke last week that his company could outlast the communist country.

I meant to say as much when it first happened. But he was apologizing in no time at all about it regardless, stating:

I truly regret my recent comment because it’s never right to joke about or denigrate any group of people, whether it’s a country, its leadership, or any part of a society and culture. Speaking in that way can take away from constructive and thoughtful dialogue in society, which is needed now more than ever.

It can also jeopardize $20 billion worth of investments and further plans to grow in China. There’s that too.

Meanwhile, New York-based Citigroup (C) applied for a securities license there too. It also has further applications being prepared for 2022.

Even the U.S. government wants in – to the point of even ignoring its own ban the last few years concerning the country.

TechCrunch released a lengthy and detailed writeup on Wednesday on how:

At least three U.S. federal agencies, including the military, have purchased China-made video surveillance equipment banned from use in the federal government.
Purchasing records seen by Tech Crunch and video surveillance news site IPVM show the agencies collectively spent thousands of dollars on purchasing video surveillance equipment manufactured by Lorex, a wholly owned subsidiary of Dahua Technology. Dahua is one of several China-based companies banned from selling to the federal government under a 2019 defense spending law over fears that the technology could help the Chinese government conduct espionage.

So my conclusion to all this?

Yes, China is a very big deal. And everyone knows it.

It’s only left to be seen how very big it can get.

The World According to REITs

In U.S.-alone news, the Senate passed House-approved legislation that keeps government funding at current levels into February. It will no doubt be signed into actuality as soon as it hits Biden’s desk.

So there will be no government shutdown today.

Meanwhile, Elon Musk sold more Tesla (TSLA) shares. And Frontier Airlines says that passengers seem to be shrugging off Omicron. In a Cavuto: Coast to Coast interview, CEO Barry Biffle noted:

I think we’re almost two years into this. And so I think consumers, as well as our employees, they’re just not panicking and overreacting. You know, we’re looking at sales volumes that are still very strong. We had a great Thanksgiving. We’re looking [at] great Christmas bookings.

That seems to be what the markets decided yesterday, with the S&P 500 rising 1.42%, or 64.06 points… the Dow up 1.82%, or 617.75 points… and the Nasdaq gaining 0.83%, or 127.27 points.

Even the Russell 2000 was optimistic with a 2.74%, or 58.91-point, gain. Moreover, they’re all up again (by just a little, admittedly) this morning around 9:15.

I’ll cover the jobs news that broke this morning on Monday. Time ran away with me today, so let’s get right to your Daily REITBeat-provided updates:

Realty Income (O) says it’s acquired about $1.1 billion worth of properties from October 1 through December 1. And it should close on another $1.1 billion before the quarter’s end. It’s also raised $1.5 billion in capital along the way to help fund that external growth.
Public Storage (PSA) officially closed on its acquisition of All Storage for $1.5 billion. As such, it now boasts another 56 self-storage properties, most of them located in the Dallas-Fort Worth area.
City Office REIT (CIO) completed the sale of its Sorrento Mesa, California, life science holdings for $576 million. That money will go toward “advancing three separate acquisitions in Dallas, Phoenix, and Raleigh,” the company says. The new properties come with an aggregate gross purchase price of about $613 million.

And, as you see below, Thursday was a very good day for REITs, with even the less-optimistic trades looking good.

Except for The GEO Group (GEO), of course. And it’s not going to be a REIT for much longer anyway.

(Source: The Daily REITBEAT)

Happy Investing

Brad Thomas

467 posts

View all my Posts

Brad Thomas is Senior Research Analyst at iREIT and CEO of Wide Moat Research LLC. With over 30 years of real estate experience, he is also long-time Editor of Forbes Real Estate Investor, a monthly subscription-based newsletter that dives deep into the vast world of profitable properties, and since 2021, he has served as an adjunct professor at New York University.

Thomas has also been featured on or in Forbes magazine, Kiplinger's, U.S. News and World Report, Money, NPR, Institutional Investor, GlobeStreet, CNN, Newsmax, and Fox. And he was the #1 contributing analyst on Seeking Alpha in 2014, 2015, 2016, 2017, 2018, 2019, 2020 and 2021 based on both page views and number of followers.

Thomas is the recently-published author of The Intelligent REIT Investor Guide (2021), co-author of The Intelligent REIT Investor (2016), and he wrote The Trump Factor: Unlocking The Secrets Behind The Trump Empire (2016) - all available on Amazon.

Thomas received a bachelor of science in business/economics from Presbyterian College and is married with five wonderful kids.

Why I Celebrate Share Price Weakness

REIT Mutual Fund	Symbol
Alpine Realty Income and Growth Fund	AIGYX, AIAGX
American Century Real Estate Fund	REAIX, REACX, AREEX, AREWX, ARYCX, AREDX
Real Estate Securities Fund	MRESX
AR Capital Real Estate Income Fund	ARIAX, ARICX, ARIPX
AssetMark Real Estate Securities Fund	AFREX
Aston/Harrison Street Real Estate Fund	AARIX, ARFCX
Baron Real Estate Fund	BREIX, BREFX
BlackRock Real Estate Securities	BIREX, BAREX, BCREX
Brookfield U.S. Listed Real Estate Fund	BRUAX, BRUCX, BRUIX, BRUYX
CGM Realty Fund	CGMRX
West Loop Realty Fund	REIIX, REIAX, REICX
Cohen & Steers Institutional Realty Shares	CSRIX
Cohen & Steers Realty Income Fund	CSEIX, CSDIX, CSBIX, CSCIX
Cohen & Steers Realty Shares	CSRSX
Columbia Real Estate Equity Fund	CREAX, CREIX, CRRVX, CRERX, CREEX, CRRFX, CREWX, CRECX, CREBX
Compass EMP REC Enhanced Volatility Weighted Fund	CWRAX, CWRIX, CWRTX, CWRCX
Davis Real Estate Fund	RPFRX, DREYX, DRECX, DREBX
Delaware Real Estate Investment Trust Portfolio II	DPRTX, DPRBX
Delaware Real Estate Investment Trust Portfolio	DPREX, DPRSX, DPRRX, DPRCX
DFA Real Estate Securities Portfolio	DFREX
Dunham Real Estate Stock Fund	DAREX, DNREX, DCREX
DWS RREEF Real Estate Securities Fund	RRRRX, RRREX, RRRAX, RRRSX, RRRBX, RRRCX
DWS RREEF Real Estate Securities Income Fund	REFAX, REFCX, REFIX, REFSX
Eaton Vance Real Estate Fund	EAREX, EIREX
EII Realty Securities Fund	EIIRX
Fidelity Advisor Real Estate Fund	FHEIX, FHEAX, FHETX, FHECX, FHEBX
Fidelity Advisor Real Estate Income Fund	FRIRX, FRIQX, FRINX, FRIOX
Fidelity Real Estate Income Fund	FRIFX
Fidelity Real Estate Investment Portfolio	FRESX
Fidelity Spartan Real Estate Index Fund	FSRNX, FRXIX, FSRVX
Fidelity Series Real Estate Equity Fund	FREDX, FREFX
Fidelity Series Real Estate Income Fund	FSREX, FSRWX
Forward Real Estate Long/Short Fund	KSRYX, FRLSX, FFSRX, KSRAX, KSRCX, KSRBX
Forward Real Estate Fund	FPREX, FFREX, KREAX, KRECX
Forward Select Income Fund	KIFYX, FSIMX, FFSLX, KIFAX, KIFBX, KIFCX
Franklin Real Estate Securities Fund	FREEX, FRLAX, FRRSX, FSERX
GMO Real Estate Fund	GMORX
Goldman Sachs Real Estate Securities Fund	GREIX, GRETX, GREAX, GRESX, GRERX, GREBX, GRECX
Great-West Real Estate Fund	MXREX
Heitman REIT Fund	OARTX, OBRTX
ING Real Estate Fund	CRARX, IREWX, IDROX, CLARX, CRWRX, CRCRX, CRBCX
INVESCO Real Estate Fund	REINX, IARFX, IARIX, IARYX, IARAX, IARRX, IARCX, AARBX
Ivy Real Estate Securities Fund	IRSAX, IREIX, IRSYX, IRSRX, IREEX, IRSCX, IRSBX
John Hancock Real Estate Securities Fund	JIREX
Johnson Realty Fund	JRLTX
J.P.Morgan Realty Income Fund	URTLX, JRIRX, URTAX, URTBX, URTCX
J.P. Morgan Security Capital U.S. Core Real Estate Securities Fund	CEEAX, CEERX, CEEFX, CEESX, CEECX
J.P. Morgan U.S. Real Estate Fund	SUSIX
Lazard U.S. Realty Equity Portfolio	LREIX, LREOX
Lazard U.S. Realty Income Portfolio	LRIIX, LRIOX
Manning & Napier Real Estate Series	MNRIX, MNREX
Morgan Stanley Institutional U.S. Real Estate Portfolio	MSUSX, MUSDX, MSULX, MURSX
Natixis AEW Real Estate Fund	NRFAX, NRFYX, NRFBX, NRFCX, NRFNX
Neuberger Berman Real Estate Fund	NBRIX, NBRFX, NREAX, NRERX, NRECX, NRREX
Nuveen Real Estate Securities Fund	FREAX, FARCX, FRSSX, FREBX, FRLCX, FREGX
Oppenheimer Real Estate Fund	OREAX, OREIX, OREYX, ORENX, OREBX, ORECX
PHOCAS Real Estate Fund	PHREX
PIMCO RealEstateRealReturn Strategy Fund	PRRSX, PETPX, PETAX, PETDX, PETCX, PETBX
Pioneer Real Estate Shares	PWREX, PYREX, PCREX, PBREX
Principal Real Estate Securities Fund	PIREX, PIRPX, PREPX, PRETX, PREJX, PRRAX, PRERX, PRENX, PRAEX, PRCEX, PRLEX
ProFunds Real Estate UltraSector ProFund	REPIX
Prudential Select Real Estate Fund	SREAX
Prudential U.S. Real Estate Fund	PJEAX, PJEZX, PJECX, PJEBX
REMS Real Estate Income 50/50 Portfolio	RREIX
REMS Real Estate Value-Opportunity Fund	HLRRX, HLPPX
Rydex Real Estate Fund	RYREX, RYHRX, RYCRX
SA Real Estate Securities Fund	SAREX
SEI Institutional Mgd Real Estate Fund	SETAX, SEIRX
Spirit of America Real Estate Income & Growth Fund	SOAAX
SSgA Clarion Real Estate Fund	SSREX
Stratton Real Estate Fund	STMDX
T.Rowe Price Real Estate Fund	TRREX, PAREX
TIAA-CREF Real Estate Securities Fund	TIREX, TRRPX, TRRSX, TCREX
Vanguard REIT Index Fund	VGSNX, VGRSX, VGSLX, VGSIX
Virtus Real Estate Securities Fund	PHRAX, PHRIX, PHRCX, PHRBX

REIT ETF	Symbol
Flex Shares	ASET
Wisdom Tree Global Ex-US	DRW
S&P 500 Equal Weight	EWRE
iShares FTSE Industrial/Office	FNIO
MSCI Real Estate Index	FREL
S&P REIT Index	FRI
First Trust S&P REIT	FRI
iShares Real Estate 50	FTY
Flexshares Global	GQRE
iShares Cohen & Streers	ICF
iShares International Developed RE	IFGL
iShares US RE	IYR
Premium Yield Equity REIT	KBWY
ETRACS Monthly Pay 2x Leverage	MORL
Market Vector Mortgage	MORT
iShares Global REIT	REET
iShares FTSE Mortgage	REM
iShares Residential	REZ
IQ US Real Estate Small Cap	ROOF
iShares FTSE NAREIT Retail	RTL
DOW Jones Global RE	RWO
SPDR Dow Jones	RWR
Schwab US REIT	SCHH
Super Dividend REIT	SRET
ProShares Ultra RE	URE
Vanguard REIT	VNQ
Vanguard Global ex-US	VNQI
iShares International Developed	WPS
Wilshire US REIT	WREI
Pacer Benchmark Data & Infrastructure RE	SRVR
Pacer Benchmark Industrial RE	INDS
Pacer Benchmark Retail RE	RTL
Hoya Capital Housing	HOMZ
NetLease Corporate RE	NETL

REIT Name	Ticker	Annual Increases/yr
Federal Realty	FRT	51
Universal Health Realty	UHT	33
National Retail Properties	NNN	29
Realty Income	O	27
Tanger Outlets	SKT	26
Urstadt Biddle	UBA	25
Essex Property Trust	ESS	25
W.P.Carey	WPC	22
National Health Investors	NHI	17
Equity Lifestyle	ELS	15
Digital Realty	DLR	15

Here’s Why China Is All Over the News Today

Brad Thomas

467 postsDecember 3, 2021

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Here’s Why China Is All Over the News Today

467 postsDecember 3, 2021

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